Letter to BS: LIC propensity to 'bail out' debt-laden PSUs makes no sense

Apropos Sucheta Dalal’s highly perceptive article “Is LIC bailing out debt-laden IL&FS?” (July 26). Life Insurance Corporation of India’s (LIC) propensity to “bail out” all debt-laden/loss-making/non performing companies — especially public sector undertakings — makes no sense at all. By this generosity, the government-owned behemoth is blatantly flouting the very purpose of its creation and existence. LIC has to work only for the benefit of millions of policy-holders. Their surplus funds should be deployed only in secure and risk-free instruments. In any case, they must not take up suspect undertakings. Infrastructure Leasing & Financial Services has not performed as well as it was intended and expected to. There is no reason why LIC should bail it out.

Krishan Kalra  Gurugram

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